Kandi Technologies Group announced today a securities purchase agreement with undisclosed institutional investors for a registered direct placement of $100 million of common stock and warrants.
The Chinese company is known in the U.S. EV market mostly because of its Kandi K27 and Kandi K23 models, which are promised to enter sale as the most affordable BEVs (especially after collecting federal and state incentives).
Kandi explains that capital is envisioned for several purposes, including "expenditures necessary to assure that our EV models comply with all necessary requirements for the entry into the U.S. market" (which might be related to the launch of K27/K23), and "research and development of EV sports car models".
Especially the second topic is interesting, as it's clearly suggesting new, sporty EVs (more than one it seems).
"The net proceeds from this offering are expected to be used for general working capital purposes including research and development of EV sports car models and expenditures necessary to assure that our EV models comply with all necessary requirements for the entry into the U.S. market."
Who knows, maybe Kandi really liked to be drag raced against Tesla and would like to introduce a more serious contender.
One thing is sure, they really want to expand in the U.S. and they are not the only Chinese company that will try its chances.